The Daily Mail has suggested the Spanish giants are willing to pay £33 million for the Croatian midfielder, but Spurs are still holding out for their asking price of £40 million.

White Hart Lane chief Andre Villas-Boas has already rejected the idea of taking Nuri Sahin on loan as part of the deal to take Modric to the Bernabeu.

However, Real still have the option of offering other squad players to Spurs alongside a significant cash sum in order to push through the move.

Jose Mourinho has decided to personally take control of negotiations in a bid to seal the deal.

The Portuguese is a personal friend of Spurs chairman Daniel Levy and believes their relationship could be the key to finally putting to bed one of the summer’s longest running transfer sagas.

Mourinho is also aware that his side are not the only club interested in Modric, as Manchester United and Paris St Germain remain willing to snap up the inventive playmaker and both have the financial clout to compete.